Business Solutions for Energy Efficiency. John Ryan Director of Services Unravelling SI 426 Conference, March 2015

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Merryl Turner
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2 HELLO

3 Business Solutions for Energy Efficiency John Ryan Director of Services Unravelling SI 426 Conference, March 2015

4 OVERVIEW 1. Context of presentation 2. Business critical points of energy efficiency 3. The business solution 4. Further opportunities

5 1. Context Energy Efficiency has moved from being an environmental management aspect to be managed to a regulated business area Obligated organisations in Ireland now need to comply with local regulations for efficiency EU (Energy Efficiency) Regulations 2014 (SI No. 426 of 2014) transposing Article 8 of Directive 2012/27/EU and/or The UK Energy Saving Opportunity Scheme (ESOS)

with local regulations for efficiency EU (Energy Efficiency) Regulations 2014 (SI No.

6 1. Context In parallel, there is continued development of Energy Efficiency schemes, tools and techniques aimed at nudging enterprises toward efficiency, e.g.: German Energy-Saving Efficiency System Ordinance (SpaEfV) and Renewable Energy Act (EEG) Irish Energy Suppliers Obligation Scheme ISO standards Corporate initiatives and programmes SEAI initiatives and programmes

ng enterprises toward efficiency, e.g.: German Energy-Saving Efficiency System Ordinance

7 2. Business critical points of EE Where energy use and organisational activity are related Energy Efficiency (EE) is a business risk Poor EE = Energy Waste = Lost Profit Thus, good EE is profit making or is it? Yes when an organisation is aligned its it business strategy and EE strategy No when an organisation fails to grasp the business need and address EE in a technical (only) manner

8 2. Business critical points of EE Often there are competing forces within a business: Our energy bill too high but we do not design or procure based on energy efficiency or life cycle costing We outsource energy management and/or procurement and are contract bound We have an EE programme but to maintain service levels means we cannot deploy it We wish to be EE but don t have the business framework needed We are unsure of where to start - data/oversight is limited

procurement and are contract bound We have an EE programme but to maintain service levels means we cannot deploy it

9 3. The business solution (in the context of SI 426)? Two approaches An energy audit ISO Both offer opportunities to identify energy savings Both allow conformity to the Regulations to be achieved Both could be run in parallel i.e. use the audit as the starting point (aka the Energy Review) for ISO BUT - the business decision needs to be considered is compliance the objective or is business performance improvement?

10 3. The preferable business solution ISO Cost benefits are both quantitative and qualitative Quantitative benefits include: Energy demand reduction (less to conduct the business) Energy waste reduction (non value use ceased) Delta in savings over just good practice (ref SEAI comparison of LIEN versus EA programme companies) Energy efficiency assessment at design (cap ex and op ex reductions) Embedded savings as opposed to project led only

ceased) Delta in savings over just good practice (ref SEAI comparison of LIEN versus EA programme companies)

11 3. The preferred business solution ISO Cost benefits are both quantitative and qualitative Qualitative benefits include: Better budgeting for energy spend Alignment between cost/energy reduction and business activity Positive behavioural change Positive organisational change Improved understanding of energy demand of business Improved awareness of energy as a business resource

reduction and business activity Positive behavioural change Positive organisational change

12 4. Further Opportunities Energy Efficient Design Emergent but for critical for larger enterprises with multiple partners, suppliers and/or vendors Behavioural change Projects aimed at embedding change in personnel or specific workplace environments (e.g. Project ISO as supply chain obligation Standard is now part of corporate governance pack and perhaps tender requirement? Personal development Certification programmes for individuals (e.g. CEM/CEA etc)

13 Summary Energy Efficiency impacts all aspects of business from design through to operations and should be considered in this regard It is now a mainstream business term and is demanded, required and needed If effective considered (via ISO 50001) it will benefit your business and you will be able to verify this

business term and is demanded, required and needed If effective considered

14 THANK YOU

Chapter 2 INDUSTRIAL BUYING BEHAVIOUR: DECISION MAKING IN PURCHASING

Chapter 2 INDUSTRIAL BUYING BEHAVIOUR: DECISION MAKING IN PURCHASING Chapter 1 THE ROLE OF PURCHASING IN THE VALUE CHAIN The role and importance of the purchasing and supply function in the value chain. The difference between concepts such as ordering, buying, purchasing,